The concept of accounting books refers to the documents or files where the financial information of the company is collected, including the operations carried out during a specified period of time and which must be legalized periodically.
These are the reports obtained from the accounting that contribute to the extraction of both economic and financial information from the company. They can be mandatory or voluntary.
Types of accounting books
Therefore, the accounting books must be distinguished between mandatory and voluntary. The former include the Daily Book and the Inventory and Annual Accounts Book, while the volunteers are the General Ledger and other auxiliary ones, such as the Auxiliary Book of maturities, the Cash Book, the Bank Book and the Book of entries and exits of warehouse.
El Commercial Code deals with regulating everything related to the accounting books and the General accounting plan. Among other things, it states that the employer must follow an orderly accounting that contributes to chronological monitoring of the different operations. It also indicates the obligation to legalize the accounting books in the Mercantile Registry of the place where the organization is domiciled.
- Diary book: in this document all economic operations related to the company's activity must be recorded on a daily basis. This book is used to store in it the different transactions made by the company that will later be transferred to the General Ledger and collect them in the accounting statements at the end of the year.
- Inventory and Annual Accounts Book: it opens with the company's detailed initial balance-inventory, and on a quarterly basis the balances of amounts and balances will be incorporated.
- Ledger: the objective of this book is to collect the different economic operations that are carried out and that appear recorded in the daily book during a financial year. In this way, it will be possible to know the balance in each account for the operations carried out.
- Auxiliary Books: along with the mandatory books, companies can also keep auxiliary books that help them in management.